Two Credit Unions Closed By RegulatorsCalifornia, Texas CU's Liquidated, Assets Sold Two credit unions in California and Texas were liquidated by the National Credit Union Administration (NCUA) and state credit union regulators this week, and their assets were sold to other institutions.
The Members' Own Federal Credit Union, Victorville, CA was closed on Weds. Its assets, loans and shares were sold to Alaska USA Federal Credit Union.
The failed credit union had $85 million in assets and 11,000 members. The NCUA closed the credit union because of its declining financial condition. Alaska USA Federal Credit Union has assets of $4.1 billion, and has 375,000 members located throughout the country. Alaska USA has 56 branch locations in Alaska, California and Washington. It serves members through more than 5,600 shared service locations nationwide.
Also on Wednesday, the Texas Credit Union Department liquidated the West Texas Credit Union. Its assets and member shares were sold to Security Service Federal Credit Union, San Antonio, TX.
The state regulator closed the credit union, which had $78 million in assets and served 25,000 members, after determining the credit union was insolvent and had no prospects for restoring viable operations.
Security Service Federal Credit Union is a federally chartered, federally insured institution with $5 billion in assets and 680,000 members nationwide. These two credit union liquidations brings the total number of failed institutions in 2009 to 109 - 95 banks and 14 credit unions that have either been closed, acquired or placed into conservatorship.